The Top 3 Ways To Avoid Being Denied Your Mortgage
Make Sure You Have a Verifiable Income Source – Your job history is important here, and you should try to prevent any gaps in employment. A mortgage lender will not be impressed by your pattern of job hopping or extended spells of unemployment. Make careful to inform your mortgage lender if there are any additional income sources, such as an inheritance.
Enhance Credit History – The biggest factor for prospective homebuyers to be turned down for a mortgage is a poor credit score. It might be difficult to be authorized if you have a history of making late payments, have had accounts transferred to a collection agency, or have just never established credit.
Time – Spend some time reviewing all of your credit reports and looking for mistakes to assist enhance your credit history. Wait to apply for a mortgage until you have paid off your credit cards, even if everything appears to be right. Make sure you are managing your money wisely and paying your bills on time.
Increase Your Debt to Income Ratio – Mortgage lenders will always assess your debt to income ratio before deciding whether to approve your application. In essence, they divide your total monthly expenses, which includes your hypothetical mortgage payment, by your gross monthly income. Your ratio will rise if you have a high debt load, including credit card debt, school loans, auto loans, and other obligations.